JP Morgan and BNP Paribas are launching two new indexes that will allow investors to invest long-term in commodities, so perhaps more exchange traded funds (ETFs) will be in the pipeline. This is the first time that a long-term investment in this asset class will be available; long-term being up to around three years, reports Duncan Kerr for Financial News.
The JP Morgan Commodity Curve Index will provide buyers with investment opportunities along "the curve" giving them the chance to spread the maturity profile. BNP Paribas will launch the Commodity Market Representative Index that provides investors another outlet to access the commodities markets. The commodities sector has been one of the fastest growing areas of fixed-income capital markets in recent years. Investment into commodities indices is forecasted to grow 20% in 2008, reaching close to $120 billion, says S&P forecasts.
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